Financing In-Transit Inventory: Perfecting Security Interests and Resolving Priority Disputes
Lender Due Diligence, Bankruptcy Risks, Intercreditor Agreements With Third Parties With Competing Interests in the Goods
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will offer guidelines for counsel advising lenders dealing with in-transit inventory financing. The panelists will share their experiences on the key pitfalls presented by financing in-transit inventory and outline strategies for perfecting security interests, enforcing remedies and dealing with other parties with competing claims to the goods.
Outline
- Common legal issues arising when financing in-transit inventory
- Prior liens of unpaid foreign sellers
- Stoppage of goods in transit and reclamation
- Effect of title retention by the seller
- Risks in the use of negotiable bills of lading
- Effect of bankruptcy of borrower
- Perfecting a security interest in goods
- Practical considerations when structuring the financing transaction
- Cargo insurance
- Custom broker agreements
- Agreements with carriers and sellers
- Agreements with NVOCC
- Intercreditor agreements with other parties with interests in the goods
- Indemnification
Benefits
The panel will review these and other key issues:
- What are the legal risks to secured lenders participating in in-transit inventory financings when a borrower faces insolvency?
- What steps should lenders take to properly perfect in-transit inventory financings?
- What are best practices for lenders’ counsel to protect against third-party claims to in-transit inventory?
- How can intercreditor agreements be used to neutralize claims of third parties with competing interests in the goods?
Faculty
C. Edward Dobbs
Partner
Parker Hudson Rainer & Dobbs
Mr. Dobbs’ practice for more than 41 years has been concentrated in documenting and closing commercial loans for... | Read More
Mr. Dobbs’ practice for more than 41 years has been concentrated in documenting and closing commercial loans for banks and other financial institutions, including asset-based lending arrangements; representing financial institutions in debt restructurings, workouts and forbearance arrangements; defending financial institutions in litigation involving alleged fraudulent conveyances, preferences and lender liability claims; representing financial institutions as secured and unsecured creditors in Chapter 11 bankruptcy cases; and representing debtors, unsecured creditors, and creditors’ committees in Chapter 11 reorganization cases. In addition to his experience representing both debtors and creditors in bankruptcy cases and in representing financial institutions in large commercial loan transactions, Mr. Dobbs has also served as an expert witness on various commercial law and bankruptcy matters.
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Thomas S. Hemmendinger
Of Counsel
Brennan Recupero Cascione Scungio & McAllister
Mr. Hemmendinger represents businesses and financial institutions in commercial finance, litigation, bankruptcy, and... | Read More
Mr. Hemmendinger represents businesses and financial institutions in commercial finance, litigation, bankruptcy, and receivership matters. He regularly writes and teaches on these topics, and is the author of HILLMAN ON COMMERCIAL LOAN DOCUMENTATION, a leading handbook for lawyers and commercial loan officers. Mr. Hemmendinger has developed an industry expertise in the international logistics and transportation sector, and understands the critical legal issues facing both service providers and customers. As a member of the Uniform Law Commission, he has been active in a number of projects including: commercial real estate receiverships (committee chairperson); regulation of virtual currencies; use of electronic communications in international contracts; and independent guarantees and standby letters of credit, a joint project with the Uniform Law Conference of Canada.
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